Breaking Bad Habits
At last, central banks in the US and China seem to be headed toward monetary-policy normalization. While the move will be painful for liquidity-addicted investors, nothing less can ensure that current excesses in asset and credit markets do not spawn new and dangerous distortions in the global economy.
https://prosyn.org/vzDHU1G
NEW HAVEN – It was never going to be easy, but central banks in the world’s two largest economies – the United States and China – finally appear to be embarking on a path to policy normalization. Addicted to an open-ended strain of über monetary accommodation that was established in the depths of the Great Crisis of 2008-2009, financial markets are now gasping for breath. Ironically, because the traction of unconventional policies has always been limited, the fallout on real economies is likely to be muted.